Crowdfunding for Your App Development
Creating an app can use up a lot of your time and resources. There is nothing more devastating than going through all of that hard work and not making any money (i.e. due to a change in application development trends). The next time you come up with a great idea for an app, you may not want to put the development into motion because you are afraid of failing again and constantly thinking of how much does it cost to create an app for you. If you believe that your new app has the real potential of shining bright like a diamond but you do not want to risk losing everything again, you may go another way – app crowdfunding to reduce those potential threats.
Explore the different mobile app funding sources that not only help in bankrolling your application but also give you feedback on your creation and ideas on how to make it more popular.
Why Should You Use Crowdfunding?
When you think of crowdfunding, you may be thinking that you are using this method to fund all aspects of your app. However, that is not necessarily the case. In many instances, you can use crowdfunding to get money to develop certain parts of the app individually. You could also obtain funds to advertise an existing application that is already available to the customers. The main purpose of crowdfunding is taking the idea or application you already have and make it better.
By putting your application on one of the crowdfunding platforms, you can also get a better idea of how interested customers are going to be in your creation. If you do not get any funding, you will know that you need to put some work into your app to make it more desirable.
When the funds start coming in, you can feel more confident that you have something that customers want. These platforms also allow users to provide you with feedback on what you have made so far. This will help you introducing changes and set you off in a better direction. This, in turn, can allow you to build apps that make you money.
Creating a Quality Network for Better Advertising
Through crowdfunding platforms, you are going to establish a much greater network of people interested in your type of product. Through networking, your name and product are going to reach many more potential customers delivering more profits.
The word-of-mouth and having a few quality applications already in your portfolio are going to be the keys to your success as an application developer. If you do not already have a solid network of supporters, now is the time to start establishing one.
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Choosing the Right Crowd Funding Platform for Your App
Explore the following crowd funding platforms to discover the one that will work best for you and your app. Each one offers different aspects so that you can choose the one that will make you the most successful.
AppStori
AppStori is a funding platform for app idea that is only open to US residents. This is app-specific, and these apps are made for the iPhone App Store and Google Play. You get to set your goal for funding, and you decide what rewards to offer in exchange for funding. If you do not reach your funding goal, you do not get any money. You also cannot get more money than what you have asked for.
The qualified experts from AppStori will take a look at your project and give you an honest opinion on whether or not it will be successful. This is what they call the pre-qualification process. After they have given you the go ahead, you will start to create the advertising for your app.
AppStori takes a 7% cut of your earnings, and Amazon takes 2-3% for the credit card processing.
In your AppStori blog, you can post developments and read comments related to your app so that you can make changes that your customers want to see. This is a newer and smaller platform so you have a better chance of your idea being seen if you choose AppStori for your app crowdfunding.
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Indiegogo
With Indiegogo’s non-app specific platform, you get to choose your funding type. Flexible funding allows you to keep your funding raised by a specified date regardless if you have reached your goal or not. Fixed funding is one that returns funds to supporters if you do not reach your goal.
When you use Indiegogo’s platform, you keep your app in your hands for 100%. Using different rewards, you’ll gradually gain the attention and hopefully the contribution from potential funders. There are many tips and tricks that Indiegogo shares with you along the way to make your crowdfunding attempt successful. Make sure that you make your app stand out from the crowd, and you’ll get the funding you are looking for.
AppBackr
AppBackr is app-specific and only used for iPhone’s App Store and Google Play. This platform allows you to get funding for applications already developed and available to customers. It can also be used for the development of a new app.
To get funding from AppBackr, first explain what your app is about, what marketplace is it for, and why they should fund your app. You get to set a goal that corresponds with how much money you need to raise for your app to start the process. When this goal is met, your Backrs will then start to earn money.
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When you reach the goal through the purchase of copies by your Backrs, you will get the requested funding delivered to your PayPal. You can then get to work in developing and promoting your product right away. When you start making money, you can pay your Backers. If you don’t reach your goal, no money is ever exchanged.
The idea behind AppBackr is that your funders get to make money off of your product. When you start to make money, you pay them back more than what they had initially invested in your idea. After your Backers are paid back their initial investment plus the amount of profit they have been promised, you’ll start getting all the funds that come in.
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Kickstarter
As of November 2022, the number of launched projects worldwide on the American crowdfunding platform Kickstarter amounted to 574,262. The success rate among these projects amounted to 40.13 percent. The total dollars pledged was 6.94 billion U.S. dollars, out of which 6.33 billion were succesful dollars.
In 2022, 75,436,079 total pledges have been placed with the average backer pledging to 3-4 campaigns.
This is only open for campaign creation in the United States. It allows you to take a creative approach to turn your app into something successful. Kickstarter is perfect for earning a crowdfunding app development.
In the Kickstarter platform, you set a goal for how much money you need to get in order to adequately fund your app. When the goal is reached, Kickstarter takes 5%, Amazon takes 3-5% for credit card processing, and then you get the money.
When crowd funders give you money on the Kickstarter platform, they do not get ownership of your product, and you do not have to give them any of your earnings. Through the rewards you offer these individuals decide on whether or not they want to invest in your product. You get to decide which rewards you want to offer in exchange for funding. You should make sure that whatever you decide on is something that is interesting, exciting, and accessible.
Kickstarter’s main goal is your success. You can review their training page to gain useful ideas on how to describe your app as well as what rewards funders respond to and how to promote your product. Because Kickstarter is not app-specific, you have to apply for more prospective funders to see your development. However, with so many apps posted out there, yours can get lost in the shuffle.
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Download Free EbookAppsFunder
AppsFunder is app-specific, and it is only used for the iPhone App Store and Google Play. During the setup process, you get to set two different milestones, and you have the ability to set later. You will define what the money given to you by crowd funders will be used for. This will give the Funders an idea of what they are investing in, and it gives you the ability to keep progressing with your app as funds come in. Funders will have immediate access to your app for free when they give the set amount you have put in place (between $1 and $5). You also get to decide what Funders will get back in relation to the revenue that has been given to you.
You set your goals and your timeframes. If the money you need has not been raised by the deadline, all Funders get their money back. When you have reached your goal in the specified time, you get 80% of your funds delivered to your PayPal account. The rest of the money will come in when your app goes live on the mobile app store. AppsFunder takes an 8% cut for the use of their platform.
One beneficial feature is the ability to have your app reviewed by one of the app experts. Their approval can give you an advantage when potential funders are looking at apps to support. You can also post updates on your project, and customers can leave feedback so that you can give customers what they want and put more money in your pocket.
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